Small sports shops face ruin as Nike and adidas axe supply

Small sports shops could be forced to close because of a move by London 2012 sponsor adidas to supply only major outlets.

The company and Nike are refusing to supply shoes and clothing to any sports shop which does not sell more than £25,000 of their products and are removing credit facilities.

It is a huge blow for small high street businesses, which rely on the popular brands to attract customers.

The move has been strongly criticised by former Olympics minister Tessa Jowell, whose local Kentish Town sports shop has been told it will be affected.

Nick Mavrides, who has had accounts with the major brands for years as owner of Ace Sports, said that they were cutting off his “lifeline”.

He told the Standard: “What they are doing is wrong. I have been an adidas and Reebok [which is owned by adidas] account holder for over 25 years and have always supported the brands.

“They just want to get into bed with the big chains — JD Sports, Foot Locker — and they don’t care about anyone else. Their action seriously affects my ability to conduct my business. It will have a catastrophic effect and force me to close.

“This is not the Olympic legacy we expected, to close all the local independent retailers who have always provided a specialist service and are an integral part of grassroot sports.”

The companies’ decision is thought to affect around 50 independent sellers.

In an email, seen by the Standard, adidas — which spent £80 million sponsoring the London Olympics — told suppliers it was ditching smaller accounts as analysis showed they were “not efficient”.

It wanted to develop “mutually beneficial partnerships with long-term trade partners”, it said.

Affected retailers have been told they can reapply for an account but will have to provide business plans to show how the £25,000 a year target would be reached, as well as attend quarterly sports shows and pass a “Distribution Trading Policy check”. Dame Tessa, who has been an Ace Sports customer for many years, said she was shocked by the move.

She said the shop provided an “invaluable service” and was “loved in the community”, adding: “It is behaviour which is inconsistent with the promotion of local sports participation.

“A shop like that is never going to reach that sort of turnover. But if you take brands out it is much, much less appealing.

“To lose Ace from Kentish Town would be a great blow.

“They should of course reconsider and make it clear they will have a policy in relation to very local shops — maybe not turnover of their product but turnover more generally.”

A spokesman for adidas said: “This decision was not taken lightly but it is in line with our global commercial policy and was made to ensure our business is solid and sustainable, and operates in the most efficient way.”

Nike said its annual minimum order requirement was in place to “support the necessary operational costs associated with delivering

the best product presentation and consumer experience at the point of sale”.